FEI Consulting was contracted by the World Bank to develop a debt analysis of the Water Sector in Kenya. The analysis is to help the sector in analyzing the immediate, medium and the long-term commitments in the water sector as well as prepare a financing strategy for the sector that will inform the investments needs of the sector.
Lance Morrell and Johan Kruger developed a model to review the financial statements for 5 of the 8 Water Service Boards and more than 20 of their respective utilities to assess the financial capacity of the Boards and the utilities to service their existing debts. Using the model, they estimated the debt carrying capacity of the sector for selected commercially viable projects that could be financed at commercial rates. In addition, FEI experts helped identify potential projects that could be financed via a blend of commercial and available public financing and those projects which would likely candidates for public-private partnerships (PPP).
The work for completed from November 2018 to June 2019; the project was funded by the World Bank.